The Government Accountability Office issued a critical report on the Treasury Department's $700 billion bailout program, saying it must develop better systems for ensuring that the recipients of taxpayer money use it for the intended purposes and comply with limits on executive compensation and shareholder dividends.
The GAO said the Treasury Department has yet to address key issues, such as figuring out how it will ensure that its plan to invest $250 billion in U.S. banks achieve the stated goals of stimulating lending to businesses and individuals.
The GAO suggested that the Treasury Department work with bank regulators to create a systematic method for determining and reporting -- in a timely manner - whether the actions of the financial institutions selling stock to the government are consistent with the aims of the program.
The report on the Troubled Asset Relief Program also noted that Treasury officials need better procedures for ensuring accountability and transparency, and for identifying and resolving conflicts of interest among the private companies that have been hired as contractors.
We're still in the process of analyzing the 66-page document. In the meantime, click on this link to read it for yourself:
Troubled Asset Relief Program: Additional Actions Needed to Better Ensure Integrity, Accountability and Transparency.
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